The impact of different names for a wine variety on prices

Research output: Contribution to journalArticle

Abstract

Purpose: The purpose of this study is to illustrate a general method for identifying the price impact of using a different varietal name for a wine. Design/methodology/approach: A revealed preference research approach is employed using marketed wines and prices. Price impacts are estimated using hedonic price models which control for the influence of other factors on prices. The technique is applied to the use of accepted synonyms to describe different varieties of Australian wine. Findings: The use of varietal synonyms in the Australian market is suggested to be more of a marketing strategy designed to command a higher price rather than because of wine stylistic reasons. Important premiums are estimated for the use of the terms Syrah, Pinot Gris and to a lesser extent for Fumé Blanc. Practical implications: Australian wine producers may be able to command price premiums by strategically choosing a name for a particular varietal. It appears no significant stylistic changes are needed to “justify” any varietal name change, and as such, only a label name change may be required. A switch to French-associated or -sounding names for a wine varietal may result in price premiums for Australian producers. Originality/value: The paper illustrates a general revealed preference method for identifying wine varietal name price premiums and further illustrates the importance of “Frenchness” in wine name use.

Original languageEnglish
Pages (from-to)185-200
Number of pages16
JournalInternational Journal of Wine Business Research
Volume30
Issue number2
DOIs
Publication statusPublished - 18 Jun 2018

Fingerprint

Wine
Price premium
Price impact
Revealed preference
Premium
Design methodology
Hedonic price model
Marketing strategy
Factors

Cite this

@article{69b6771c857d478aac934cdd2f9f7cb6,
title = "The impact of different names for a wine variety on prices",
abstract = "Purpose: The purpose of this study is to illustrate a general method for identifying the price impact of using a different varietal name for a wine. Design/methodology/approach: A revealed preference research approach is employed using marketed wines and prices. Price impacts are estimated using hedonic price models which control for the influence of other factors on prices. The technique is applied to the use of accepted synonyms to describe different varieties of Australian wine. Findings: The use of varietal synonyms in the Australian market is suggested to be more of a marketing strategy designed to command a higher price rather than because of wine stylistic reasons. Important premiums are estimated for the use of the terms Syrah, Pinot Gris and to a lesser extent for Fum{\'e} Blanc. Practical implications: Australian wine producers may be able to command price premiums by strategically choosing a name for a particular varietal. It appears no significant stylistic changes are needed to “justify” any varietal name change, and as such, only a label name change may be required. A switch to French-associated or -sounding names for a wine varietal may result in price premiums for Australian producers. Originality/value: The paper illustrates a general revealed preference method for identifying wine varietal name price premiums and further illustrates the importance of “Frenchness” in wine name use.",
keywords = "Australia, Econometric model, Pricing, Regression, Wine prices, Wine varieties",
author = "Eddie Oczkowski",
year = "2018",
month = "6",
day = "18",
doi = "10.1108/IJWBR-02-2017-0010",
language = "English",
volume = "30",
pages = "185--200",
journal = "The International Journal of Wine Marketing",
issn = "1751-1062",
publisher = "Emerald Group Publishing Limited",
number = "2",

}

The impact of different names for a wine variety on prices. / Oczkowski, Eddie.

In: International Journal of Wine Business Research, Vol. 30, No. 2, 18.06.2018, p. 185-200.

Research output: Contribution to journalArticle

TY - JOUR

T1 - The impact of different names for a wine variety on prices

AU - Oczkowski, Eddie

PY - 2018/6/18

Y1 - 2018/6/18

N2 - Purpose: The purpose of this study is to illustrate a general method for identifying the price impact of using a different varietal name for a wine. Design/methodology/approach: A revealed preference research approach is employed using marketed wines and prices. Price impacts are estimated using hedonic price models which control for the influence of other factors on prices. The technique is applied to the use of accepted synonyms to describe different varieties of Australian wine. Findings: The use of varietal synonyms in the Australian market is suggested to be more of a marketing strategy designed to command a higher price rather than because of wine stylistic reasons. Important premiums are estimated for the use of the terms Syrah, Pinot Gris and to a lesser extent for Fumé Blanc. Practical implications: Australian wine producers may be able to command price premiums by strategically choosing a name for a particular varietal. It appears no significant stylistic changes are needed to “justify” any varietal name change, and as such, only a label name change may be required. A switch to French-associated or -sounding names for a wine varietal may result in price premiums for Australian producers. Originality/value: The paper illustrates a general revealed preference method for identifying wine varietal name price premiums and further illustrates the importance of “Frenchness” in wine name use.

AB - Purpose: The purpose of this study is to illustrate a general method for identifying the price impact of using a different varietal name for a wine. Design/methodology/approach: A revealed preference research approach is employed using marketed wines and prices. Price impacts are estimated using hedonic price models which control for the influence of other factors on prices. The technique is applied to the use of accepted synonyms to describe different varieties of Australian wine. Findings: The use of varietal synonyms in the Australian market is suggested to be more of a marketing strategy designed to command a higher price rather than because of wine stylistic reasons. Important premiums are estimated for the use of the terms Syrah, Pinot Gris and to a lesser extent for Fumé Blanc. Practical implications: Australian wine producers may be able to command price premiums by strategically choosing a name for a particular varietal. It appears no significant stylistic changes are needed to “justify” any varietal name change, and as such, only a label name change may be required. A switch to French-associated or -sounding names for a wine varietal may result in price premiums for Australian producers. Originality/value: The paper illustrates a general revealed preference method for identifying wine varietal name price premiums and further illustrates the importance of “Frenchness” in wine name use.

KW - Australia

KW - Econometric model

KW - Pricing

KW - Regression

KW - Wine prices

KW - Wine varieties

UR - http://www.scopus.com/inward/record.url?scp=85049861858&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85049861858&partnerID=8YFLogxK

U2 - 10.1108/IJWBR-02-2017-0010

DO - 10.1108/IJWBR-02-2017-0010

M3 - Article

VL - 30

SP - 185

EP - 200

JO - The International Journal of Wine Marketing

JF - The International Journal of Wine Marketing

SN - 1751-1062

IS - 2

ER -